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Basic Elements of OrganizingChapter Eleven Basic Elements of Organizing
The Elements OrganizingDeciding how to best group organizational activities and resources. Job Design Departmentalization Chain of Command Span of Management Authority Centralization vs. Decentralization Tall vs. Flat Organizations Copyright © Houghton Mifflin Company. All rights reserved.
Job Specialization (Division of Labor) Job Design-- Job Specialization (Division of Labor) The degree to which the overall task of the organization is broken down and divided into smaller component parts. Benefits of Specialization Workers can become proficient at a task. Transfer time between tasks is decreased. Specialized equipment can be more easily developed. Employee replacement becomes easier. Limitations of Specialization boredom and dissatisfaction with mundane tasks. Anticipated benefits do not always occur. Copyright © Houghton Mifflin Company. All rights reserved.
Adam Smith’s Example of Job SpecializationMaking a pin (nail) requires 18 tasks 1 worker doing all 18 tasks might make 20 pins (nails) a day. 20 workers = (20 x 20) = 400 pins ______________________________ With specialization: 20 workers make 100,000 pins a day. 1 worker = 5,000 pins 20 pins vs. 5,000 pins per worker Copyright © Houghton Mifflin Company. All rights reserved. 10
Alternatives to SpecializationJob Rotation Systematically moving employees from one job to another in an attempt to reduce employee boredom. Job Enlargement An increase in the total number of tasks workers perform. Job Enrichment Increasing both the number of tasks the worker does and the control the worker has over the job. Copyright © Houghton Mifflin Company. All rights reserved.
Alternatives to SpecializationJob Characteristics Approach: suggests jobs should be diagnosed and improved along 5 core dimensions. Core Dimensions Skill variety—the number of tasks a person does in a job. Task identity—the extent to which the worker does a complete or identifiable portion of the total job. Task significance—the perceived importance of the task. Autonomy—the degree of control the worker has over how the work is performed. Feedback— the extent to which the worker knows how well the job is being performed. Copyright © Houghton Mifflin Company. All rights reserved.
The Job Characteristics ApproachCopyright © Houghton Mifflin Company. All rights reserved.
Alternatives to SpecializationWork Teams An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks. Copyright © Houghton Mifflin Company. All rights reserved.
Grouping Jobs: DepartmentalizationThe process of grouping jobs according to some logical arrangement. Rationale for Departmentalization Organizational growth exceeds the owner-manager’s capacity to personally supervise all of the organization. Additional managers are employed and assigned specific employees to supervise. Copyright © Houghton Mifflin Company. All rights reserved.
Grouping Jobs: Departmentalization (cont’d)Functional Departmentalization Grouping jobs involving the same or similar activities. Product Departmentalization Grouping activities around products or product groups. Customer Departmentalization Grouping activities to respond to and interact with specific customers and customer groups. Location Departmentalization The grouping of jobs on the basis of defined geographic sites or areas. Copyright © Houghton Mifflin Company. All rights reserved.
Bases for DepartmentalizationCopyright © Houghton Mifflin Company. All rights reserved.
Establishing Reporting RelationshipsChain of Command A clear and distinct line of authority among the positions in an organization. Unity of Command Each person within an organization must have a clear reporting relationship to one and only one boss. Scalar Principle A clear and unbroken line of authority must extend from the bottom to the top of the organization. Copyright © Houghton Mifflin Company. All rights reserved.
Tall Versus Flat OrganizationsSpan of Management (Span of Control) - The number of people who report to a particular manager. Copyright © Houghton Mifflin Company. All rights reserved.
Factors Influencing the Span of ManagementCopyright © Houghton Mifflin Company. All rights reserved.
Distributing AuthorityPower that has been legitimized by the organization. Delegation The process by which managers assign a portion of their total workload to others. Reasons for Delegation To enable the manager to get more work done by utilizing the skills and talents of subordinates. To foster development of subordinates by having them participate in decision making and problem. Copyright © Houghton Mifflin Company. All rights reserved.
Decentralization and CentralizationSystematically delegating power and authority throughout the organization to middle- and lower-level managers. Centralization Systematically retaining power and authority in the hands of higher-level managers. Factors Determining Choice of Centralization External environment’s complexity and uncertainty History of the organization Nature (cost and risk) of the decisions to be made. Copyright © Houghton Mifflin Company. All rights reserved.
Differentiating Between PositionsLine Positions Positions in the direct chain of command responsible for the achievement of an organization’s goals. Have formal (legitimate) authority. Staff Positions Positions intended to provide expertise, advice, and support to line positions. Have advisory authority; can give compulsory advice. Have functional authority to enforce compliance with organizational policies and procedures. Copyright © Houghton Mifflin Company. All rights reserved.
Principles of Management Learning Session # 31 Dr. A. Rashid Kausar.
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